Which of the Following Is True of Business Markets

question 21

Multiple Choice

Which of the following is true of business markets?

• A)The business marketer normally deals with far more but far smaller buyers than the consumer marketer does.
• B)Business markets involve far less money and items than do consumer markets.
• C)Business demand is derived demand as it ultimately derives from the demand for consumer goods.
• D)A small percentage decrease in consumer demand can cause large increases in business demand.
• E)The total demand for business products is much affected by price changes in the short and long run.

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Definitions:

Marginal Revenue Function

A calculation that shows how much extra revenue a firm will receive from selling one more unit of a product or service.

Demand

Describes the amount of a product or service that buyers are ready and can afford to buy at different prices over a specific time frame.

Book

A written or printed work consisting of pages glued or sewn together along one side and bound in covers.

Profit-Maximizing

The process or strategy employed by a firm to adjust its production and prices to achieve the highest possible profit.